Sorry about length of post: just trying to get all the background facts down.
I have a 6 year old neutered male parson russell terrier, whose general obedience is quite good, but who has a fairly intractable problem of aggression directed at other dogs (almost always male dogs).
He will be fine with some dogs, even ones not previously met. And he never seems to want a full-on fight. He won't travel far to approach other dogs, but if one comes quite close he would (if I let him) approach rapidly, jump up, and nip on the back of the neck. Having achieved this single nip he will very readily stop altogether and come back to me. (Obviously I don't let this happen: his recall is quite good and I quickly put him on lead when passing other dogs.)
On lead, he is more aggressive: he will lunge and snarl. I have tried distraction, with food and with toys. I also try working on general obedience, with the idea of improving his focus on me rather than on the other dog. Toys work best: usually, if we are far enough from home, he would rather focus on a toy than on the other dog -- but if we are near home, he is more determined, much more likely to ignore the toy, and much more likely to regard almost any dog as unacceptable.
It seems that his behaviour is a combination of male sexual aggression (I didn't neuter him until 11 months -- too late I now think) but also nervousness. He tends to look assertive rather than frightened, but I think that is not the whole story.
Within the home he is very obedient for every family memberand tends to be a bit over-placatory, iyswim. I have to be quite low-key about affection, for example, because if I loom over him with lots of words and lots of touching he tends to lower his body posture and roll over, then be rather painfully still. And he will readily yawn, gaze-avoid, etc, if he feels exposed in any way. Having said that, he is very very happy dog at home with his own people -- playful lively, full of fun. He enjoys obedience work, esp using his nose.
I'm after any tips you might have that would help me understand him and more importantly change his behaviour with other dogs. When he was younger I took him to classes, and he did learn to be quite good with all the dogs there: but I never managed to generalise this success to dogs out there in the world. I hate having to put him on lead all the time: I feel that it entrenches his aggression.
Many thakns in advance for any thoughts.